The danger of problems in the banking sector for the coin industry became clear in the spring of 2023, when the crisis broke out in the United States. At that time, several financial organisations that interacted with the digital asset sector were at risk of collapse.

The most striking here was the collapse of the large Silicon Valley Bank, which was used by Circle. This is the issuer of a large steiblcoin USDC, whose rate then lost its peg to the dollar and fell to 87 cents.

The fall in the price of the USDC steiblcoin in March 2023

As it became known at that time, Circle had $3.3 billion in SVB accounts. And access to them was lost for a while.

However, the situation eventually returned to normal. And USDC continues to be one of the largest stablecoins in the niche with a market capitalisation of $34.8 billion.

Who is hindering the development of cryptocurrencies?

Representatives of the largest US crypto exchange Coinbase were able to extract the above information after filing two Freedom of Information Act requests against the FDIC.

Now the management of the trading platform is trying to understand the background of friction between crypto startups and large institutional representatives of the banking sector, which do not always want to provide services to blockchain projects on normal terms.

Coinbase crypto exchange CEO Brian Armstrong

According to Cointelegraph’s sources, Paul Grewal, Coinbase’s general counsel, shared the finding on Twitter. Here’s his rejoinder.

We have now found over twenty examples of the Federal Deposit Insurance Corporation ordering banks to “suspend, refrain from providing, or not continue” providing services to cryptocurrency-related companies. The public deserves transparency, not an agency operating behind a bureaucratic curtain.

Coinbase general counsel Paul Grewal

According to Grewal, the FDIC restrictions are part of a larger strategy called Operation Chokepoint 2.0 or Operation Chokepoint 2.0, the existence of which was previously disclosed by the blockchain industry.

Recall, within its framework, the U.S. government tried to limit the access of the cryptoindustry to banking services. An analogy is drawn with the original Operation "Latch" from 2013, during which US financial regulators pressured banks, trying to force them to stop serving companies in "risky" industries like gambling and gun shops.

In the context of cryptocurrencies, Operation Boost 2.0 implies that the government and regulators are using similar methods to pressure banks to limit their co-operation with cryptocurrency companies, thereby making it harder for them to operate and grow. Such actions are perceived as a way to combat the risks associated with cryptocurrencies – money laundering and the financing of illegal activities.

Such a pretext seems unconvincing, as fiat money is disproportionately used to commit crime, yet no one predictably fights it. Cryptocurrencies, on the other hand, operate on transparent blockchains that allow any movement of digital assets to be tracked. With this in mind, the anti-monetary initiative seems even more foolish.

Earlier, the existence of this initiative was confirmed by the head of Galaxy Digital, Mike Novogratz. According to him, such activity of the authorities is coordinated at the highest level. Accordingly, the Democrats and representatives of the current administration of US President Joe Biden clearly do not want digital assets to develop and attract more and more investors.

Galaxy Digital CEO Mike Novogratz

In reality, however, crypto is an unpopular tool for money laundering – especially when comparing its share in this context to cash. Accordingly, the FDIC’s crackdown can be described as a routine attempt by the government to keep control of the country’s financial flows. Alas, this strategy has already created problems for the coin niche and has at least partially achieved its objective.

😈 MORE INTERESTING CAN BE FOUND AT US IN YANDEX.ZEN!

As analysts note, to make money on changes in the price of cryptocurrencies, it is not necessarily necessary to buy Bitcoin or altcoins. It is enough to buy shares of MicroStrategy – the largest holder of BTC in the corporate world. This was emphasised by analysts at brokerage firm Cannacord in a recent report.

The brokerage raised its price target on MicroStrategy shares from $173 to $300, maintaining a “buy” rating, meaning a buy recommendation. The company’s shares rose 0.4 percent to $245.50 by the end of last week. Here’s the relevant rejoinder on the matter, as quoted by Coindesk.

If the share price is the true test for any business model, we think MSTR is hard to beat.

Changes in MicroStrategy’s share price

Since the company adopted a strategy to permanently acquire BTC in August 2020, it has significantly outperformed not only the stock market averages, but Bitcoin itself.

To make matters worse, last week the company announced a plan to raise $42 billion over the next three years. That money will be used to acquire bitcoins. And the company already owns 252,000 coins.

According to analysts, MicroStrategy’s leverage strategy “provides the potential for an additional premium to spot in MSTR stock.” Therefore, those who believe in the continuation of the global bullrun in crypto should pay attention to the said securities. In addition, stock market transactions are not restricted with the same regulatory enthusiasm as crypto transactions.


Information from the crypto exchange Coinbase once again emphasises the importance of the US presidential election, which will take place tomorrow. It is obvious that the Democrats, in case of a possible victory, will continue to maintain their position on crypto, which has been observed over the past four years. At the same time, Republicans led by Donald Trump have a more open-minded attitude towards the coin market.


For more interesting stuff, look for our millionaire crypto chat. There, we’ll talk about other important topics that influence the course of the current bullrun in the digital asset industry.

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